Good morning. My name is Jack; I'll be your conference operator today. At this time, I would like to welcome everyone to the Chesapeake Utilities 2014 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question and answer session. [Operator Instructions] Thank you. Ms. Beth Cooper, Senior Vice President and Chief Financial Officer, you may begin.

Thank you, Jack. And good morning everyone. We appreciate you joining us this morning to review our fourth quarter and yearend results. We know that this is a very busy time at the height of the earnings reporting season and we appreciate your continued interest in the company. Joining me on the call today are Mike McMasters, President and CEO; and Mat Kim, Vice President and Controller. We have prepared a presentation to accompany our discussion today. This presentation can be accessed on our website at www.chpk.com under the Investors section and Events & Webcast subsection or via our IR app. Before we begin let me remind you that matters discussed in this conference call may include forward looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward looking statements. The Safe Harbor for forward looking statements section of the company's 2014 annual report on Form 10-K which was filed yesterday provides further information on the factors that could cause such statements to differ from our actual results. Finally, please note that earnings per share data are shown on a fully diluted basis and reflects the company's three-for-two stock split effective September 8, 2014. Turning to Slide 3. Yesterday we announced 2014 net income of $36.1million or $2.47 per share, an increase of $3.3 million, or $0.21 per share compared to 2013. This increase in earnings per share represented growth of 9.3%. As reported fourth quarter net income was $10.1 million, or $0.69 per share. The fourth quarter results represented an increase in net income of $414,000, or $0.02 per share over the fourth quarter of 2013. Our employees have consistently delivered increased performance year after year with 2014 representing the eight year of record earnings. We believe we are well positioned to…

Thank you, Beth. And good morning, everyone. As Beth has just highlighted, 2014 was another record year for Chesapeake. Before moving on to slide 10, I'd like to say a few words about some of the items that differentiate us as a company. We are fortunate to serve areas that have organic growth opportunities. Nevertheless, we are not resting on our laurels but rather we are looking at opportunities beyond our existing service territories and beyond our existing offerings. To enhance our ability to grow we continue to strengthen our business development activities and to expand Chesapeake's reach and capabilities. Putting on our foundation of dedicated and capable employees, what separates us from most is that we do a remarkable job of identifying and developing growth opportunities in a disciplined manner. Within effectively manage regulation to produce superior returns to our shareholders. Our determination and consistent performance enable us to deliver, reliable, low cost energy to our customers, generate returns on capital that are above peer group mediums and as a result access the capital necessary to continue our growth cycle. Turning to Slide 10. The environmental and economic advantage of natural gas continues to provide opportunities for expansion of its use in our service territory and across the United States. Natural gas is in abundant, clean and affordable fuel and significant reserves we have here in the United States provide security of supply and price. This is reflected in the comparison of energy prices on slide 10 which shows that even with the falling price of oil late last year, natural gas still enjoys a price advantage compare to oil and is expected to maintain this advantage for the foreseeable future. This natural gas price advantage coupled with our other competitive advantages creates opportunities for continued growth. One example…

[Operator Instructions] And your first question comes from Spencer Joyce from Hilliard Lyons. Your line is open.

Hi, Beth, good morning. How are you? Doing well and doing well in dodging snow best I can I guess it is headed your way now.

There is plenty of cold here and we are smiling.

I hear you. Well first off congrats on a good year, another year of double digit earnings growth is pretty impressive. I know we keep looking at that ROE versus capital investment slide. It is pretty impressive across the board. But turning here to a couple of questions I want to ask about the Eight Flags project. That $7.5 million gross margin projection, is that going to be split somewhat between regulated and non regulated portion of the business? I know you won't have quite a few touch points along that chain there. Or is that perhaps going to be unregulated.

There is all, the majority of that -- the vast majority of that's going to be unregulated, there might be a little small sliver of regulated but as you know the regulated electric distribution rate have pass through cost, you pass through cost of power and so there is not a whole lot of pick up there on the regulated utility side most of because of the customer.

Okay. Got you. So most of Eight Flags will be unregulated. I have to assume it will be while unregulated somewhat more stable and or predicable than perhaps some of the propane marketing or some of the current non regulated stuff that you are having. Is that a fair assessment there?

Yes. It is. You figure that this is going to be essentially base load power to FPU that's being sold and then we will have steam out they are being sold to Rayonier

Okay, great, great. Thanks. Turning to Gatherco a little bit and I know I have asked this before but what's the timeframe on getting a read on perhaps specifically the EBITDA kind of on a trailing basis for Gatherco. I know we have the purchase price but kind of don't have that other side of the equation to gauge a purchase multiple or really for-- kind of the price of value proposition of that deal at this point. What's the timeframe for getting that stuff?

Right now, Spencer, I think we envision as we come through the second quarter and we have some performance of that business unit we will be able to share some more information in regards to composition of their business. In terms of contribution of margin from the various components and provide more color around that. So I think we are really looking at the -- probably the June 30th earnings release to have some additional information.

Okay, great, that's very helpful. Also regarding perhaps additional growth there in the east Ohio region. Is it too much of leap at this point to think that the Gatherco deal is getaway for you all establishing an LDC or more heavily regulated subsidiary there in that region. Is that really too far down the road to be playing into our outlook?

I would say yes, Spencer. I think what you can see us doing -- obviously the first year we are going to be looking at every opportunity we can find and the company is actually been doing that anyway. Gatherco as on its own but we bring access to more capital so we are going to be looking at initially cultivating their current opportunities and then also reaching out to the producers to see if there is additional services that we can provide, we think that there are -- and the LDC side of things that obviously will be at the top of our mind but starting an LDC from scratch is -- it will -- those cost to regulation is pretty high but we obviously can do that. We know how to do that.

Yes. Absolutely

So that will be something we will be considering so --

Okay, great. One last kind of to tie up or follow up. I really think that organic customer growth story has been under emphasized by me for a little while. So many exciting projects on your end, if I may have missed id did you all give sort of a core assumption for organic customer growth rate and kind of mammoth here for the past year we have been around 2%. Is that -- would that be a number going forward that you all are comfortable with?

When you look at our recent history and you are correct Spencer, when you look at 2014 overall, that is the growth rate that we have been running, it is been little here on the peninsula what you had is a 2.5% customer growth in Florida, some of that growth is driven on the CNI side so looking at from a growth percentage kind of a little less important. So I think for purposes of looking at in today's market with where things are, I think that's a reasonable estimate to use.

Okay, fantastic and good point there on kind of the gap between the growth there on the peninsula and there on the Florida peninsula actually. But that's all I had. Congrats on a good year. See you at AGA.

[Operator Instructions] There are no more questions at this time. I'll now turn the call back over to Mike McMasters, President and CEO.

Yes. Thank you for joining us on our call today. And for taking interest in or being a shareholder of Chesapeake. We are proud what our team has accomplished for shareholders in the past. And we are committed to maximizing return going forward. Thank you. Bye.

This concludes today's conference call. You may now disconnect.